Hill Heat: Bingaman-Specter Low Carbon Economy ActScience Policy Legislation Actiontag:hillheat.com,2005:TypoTypo2013-10-06T02:02:02-04:00Brad Johnsonurn:uuid:94785849-c9ae-44d7-9582-b1ab027723942007-07-13T11:53:00-04:002013-10-06T02:02:02-04:00Bingaman-Specter Low Carbon Economy Act<p>On Wednesday, Senators Jeff Bingaman (D-NM) and Arlen Specter (R-PA) introduced the text of the &#8220;<a href="http://energy.senate.gov/public/index.cfm?FuseAction=IssueItems.View&#38;IssueItem_ID=55">Low Carbon Economy Act</a>&#8221; (S 1766), an industry-friendly cap-and-trade bill.</p>
<p>The <strong>targets</strong> are 2006 levels of emissions by 2020, 1990 levels by 2030. No targets are set before 2020.</p>
<p><strong>Price</strong> of <span class="caps">CO2</span> is <strong>not</strong> set by market, but by the legislation at $12 a ton, rising each year at 5% above inflation. This decouples the price of <span class="caps">CO2</span> from the target reductions, a central component of most cap-and-trade systems.</p>
<p><strong>Allowances</strong> are intially given away to the private sector, the bonanza being reduced after five years. Allowances will also be given away for fuel converted to feedstock and for fuel or other <span class="caps">GHG</span> precursors (e.g. HFCs) exported from the United States (Section 301).</p>
<p><strong>Sectors</strong> covered are limited to petroleum and natural gas plants and importers, and large coal-consuming (&gt;5000 Ton/yr) facilities.</p>
<p>The bill was written by the <a href="http://www.energycommission.org/">National Commission on Energy Policy</a> (a project of the <a href="http://www.bipartisanpolicy.org/">The Bipartisan Policy Center</a>, supported primarily by the Hewlett Foundation) and supported by coal-intensive and nuclear industry players including American Electric Power, Duke Energy Corp., Edison International, Exelon Corp., <span class="caps">PNM</span> Resources, <span class="caps">PPL</span> Corp. and <span class="caps">NRG</span> Energy Inc.</p>
<ul>
<li><a href="http://www.washingtonpost.com/wp-dyn/content/article/2007/07/11/AR2007071101627.html">Washington Post coverage</a></li>
<li><a href="http://public.cq.com/docs/gs/greensheets110-000002548297.html">CQ Green Sheet</a></li>
</ul><p>On Wednesday, Senators Jeff Bingaman (D-NM) and Arlen Specter (R-PA) introduced the text of the &#8220;<a href="http://energy.senate.gov/public/index.cfm?FuseAction=IssueItems.View&#38;IssueItem_ID=55">Low Carbon Economy Act</a>&#8221; (S 1766), an industry-friendly cap-and-trade bill.</p>
<p>The <strong>targets</strong> are 2006 levels of emissions by 2020, 1990 levels by 2030. No targets are set before 2020.</p>
<p><strong>Price</strong> of <span class="caps">CO2</span> is <strong>not</strong> set by market, but by the legislation at $12 a ton, rising each year at 5% above inflation. This decouples the price of <span class="caps">CO2</span> from the target reductions, a central component of most cap-and-trade systems.</p>
<p><strong>Allowances</strong> are intially given away to the private sector, the bonanza being reduced after five years. Allowances will also be given away for fuel converted to feedstock and for fuel or other <span class="caps">GHG</span> precursors (e.g. HFCs) exported from the United States (Section 301).</p>
<p><strong>Sectors</strong> covered are limited to petroleum and natural gas plants and importers, and large coal-consuming (&gt;5000 Ton/yr) facilities.</p>
<p>The bill was written by the <a href="http://www.energycommission.org/">National Commission on Energy Policy</a> (a project of the <a href="http://www.bipartisanpolicy.org/">The Bipartisan Policy Center</a>, supported primarily by the Hewlett Foundation) and supported by coal-intensive and nuclear industry players including American Electric Power, Duke Energy Corp., Edison International, Exelon Corp., <span class="caps">PNM</span> Resources, <span class="caps">PPL</span> Corp. and <span class="caps">NRG</span> Energy Inc.</p>
<ul>
<li><a href="http://www.washingtonpost.com/wp-dyn/content/article/2007/07/11/AR2007071101627.html">Washington Post coverage</a></li>
<li><a href="http://public.cq.com/docs/gs/greensheets110-000002548297.html">CQ Green Sheet</a></li>
</ul>